On December 6, 2017, the Fair Labor Association (“FLA”) initiated a Third Party Complaint from the Union of the Textile, Similar and Related Industries of El Salvador (“SITSCES”), affiliated with the Union Federation of El Salvador (“FESS”). FESS/SITSCES alleged violations of labor standards and of the FLA Workplace Code of Conduct at the factory Apple Tree S.A. de C.V., located in San Salvador, El Salvador. FLA member company Delta Apparel and affiliates Dallas Cowboys Merchandising and VF Corporation were sourcing from the factory at the time of the Complaint.
Specifically, the Complaint alleged lack of compensated time for workers to attend medical appointments; noncompliance with legal provisions regarding compensation for the first three days of medical leave, Christmas Bonus, annual leave, and overtime; off-the-clock work without compensation; health and safety issues including the ineffectiveness of the health and safety committee and inadequate filtering of drinking water; failure to inform workers of emergency calls received from the outside during working hours; and preferential treatment of other unions recognized in the factory.